Valuer-General land indices

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The Department of Treasury and Finance has contracted the Valuer-General Victoria (VGV) to provide on an ongoing basis property price movement indices, for use by departments in October and April each year.

Each year, these indices provide an indication of the percentage movement in land values by postcode areas for the 12 months ending 31 December and 30 June respectively, and are subject to the caveats below.

As the indices have different commencement dates, it cannot be assumed that they are cumulative.

Indices are calculated for the following property types categories on a post code basis:

vacant house land;

vacant land en-globo;

vacant land commercial;

vacant land industrial; and

rural.

These categories generally equate to the 'underlying' zoning of the land assets which government departments and agencies control. There are approximately 700 post codes in Victoria that represent reasonable geographic areas for which indexation factors are supplied by the VGV.

The attached PDF and Excel files are to be used in accordance with the requirements specified in FRD 103F Non-financial physical assets. The Valuer-General has also noted that the values specified in the PDF file are the ones to be relied on and that the Excel file has only been prepared to minimise the need to re-key the information contained in the PDF file.

The Valuer-General has also specified the following caveats for use with these indices:

These indexation factors are prepared by Valuer-General Victoria (VGV) for the specific purpose of showing the general price movements in land values for the 12 month period for the different land use types in the known postcodes throughout Victoria.

VGV have tried to remove postcodes from the list that represent Post Office boxes.

The factors only show a generalised price movement in land in each postcode area for the period mentioned and may not highlight particular sharp increases or decreases in particular localities.

The factors are only for government financial reporting use and are not for public distribution.

The factors are produced by VGV from interpretation of property sales (auctions and private sales), valuation and statistical data that comes to VGV from various sources. The data is checked by consultation with valuers and property professionals.

The indexation factors will not necessarily show the same percent movement in land values as those reported in daily newspapers due to varying data sources aggregation and the interpretation of the data.

Should agencies wish to use these indexation factors for the purpose of revaluation of their assets, they need to be aware of the provisions of FRD 103F, in particular section 4 of Appendix A.

Please note: If DTF, VAGO and Local Government decide that the factors are suitable, the factors may be used by Local Government areas if there are no existing indexation factors available for Councils to use. It will be an individual Council's decision whether to use the factors, or not. VGV make the factors available only for financial reporting purposes only and do not mandate their use for such by Councils.

For clarification, agencies should also note that an indexation factor of for example 1.03 = 3% increase and not 1.03% increase.

For 30 June reporting entities, the October indices are used to assess whether any valuation is required. If a managerial revaluation is required, the FRD indicates that the October indices will also be used to revalue the relevant asset class.

However, in practice, if the April indices reflect a more updated number from the outcome using the October indices, the April indices should be used for the actual valuation. A similar situation would apply for 31 December reporters, only using the October indices as the later indices.

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The Department of Treasury and Finance acknowledges Aboriginal and Torres Strait Islander people as the Traditional Custodians of the land and acknowledges and pays respect to their Elders, past and present.